The Government has amended company law in an attempt to increase the number of firms offering direct employee ownership schemes. UK employee owned companies have a turnover of £30bn a year and employ more than 130,000 people. Ministers say these firms are more productive, profitable and more resilient to economic shocks than other businesses. The
Employment minister Jo Swinson has referred 100 companies to HM Revenue & Customs for allegedly breaching minimum wage regulations by employing unpaid interns. Internships, which encourage young people to work for nothing to gain experience, have become more common in recent years but they remain controversial. Ms Swinson was given the names of the 100
The Government has made significant concessions on its ‘shares for employment rights’ scheme in order to get it through the House of Lords. The scheme, in which employees give up some employment rights in return for shares in the company they work for, has met with strong opposition from both Labour and the Liberal Democrats.
The new National Minimum Wage rates include an increase for apprentices. The Low Pay Commission (LPC) had recommended that the rate for apprentices should be frozen following concerns about compliance, but the Government has decided to go ahead and increase it. Business Secretary Vince Cable said: “The independent Low Pay Commission plays a crucial role
The Government has announced new measures designed to simplify and improve the employment tribunal system. The move follows concerns from employers that tribunal cases are both expensive and time-consuming for them. The proposals include: new strike out powers to ensure that weak cases that should not proceed to full hearing are halted at the earliest
A company has been granted an interim injunction to prevent a former employee from soliciting its clients. The case involved an employee who had been a senior manager and associate director of the company. In October 2012, he was told that he was no longer a senior manager but could continue as an associate director.
Many businesses overestimate the burden placed on them by employment regulations, according to Government research. Its survey found that businesses that view regulations as burdensome often did so because of a lack of understanding of employment law. Dismissal processes were seen as particularly stressful and costly, with some employers going beyond the legal requirements because
The Government has published more information about its plans for shared parental leave and extending the right to flexible working. It says that under the new system: Employed mothers will still be entitled to 52 weeks of maternity leave as a day one right Mothers can choose to end their maternity leave after the initial
It has been announced that awards for unfair dismissal are to be limited to one year’s salary. However, the overall cap will remain at £72,300. Employment relations minister Jo Swinson said the change would be introduced in an amendment to the Enterprise and Regulatory Reform Bill, which is currently going through parliament. Ms Swinson said:
Redundancy regulations are being modified in a move designed to help both businesses and employees. The main change is to reduce the minimum period before large scale redundancies can take place from 90 days to 45 days. This affects redundancy programmes involving more than 100 employees. The Government will also legislate to make clear that